This chapter is all about regression. If you recall, linear regression for two variables is based on a linear equation with one independent variable. Both variables are intervally scaled. The equation has the form:
where \(a\) and \(b\) are constant numbers.
The variable \(\bf x\) is the independent variable, and \(\bf y\) is the dependent variable. Another way to think about this equation is a statement of cause and effect. The \(X\) variable is the cause and the \(Y\) variable is the hypothesized effect. Typically, you choose a value to substitute for the independent variable and then solve for the dependent variable. Be aware that the words of "cause and effect" here are used strictly in a statistical sense. It by no means indicates a causal relationship from the research design perspective.
The following examples are linear equations.
The graph of a linear equation of the form \(y = a + bx\) is a straight line. Any line that is not vertical can be described by this equation
Graph the equation \(y = –1 + 2x\).
Aaron's Word Processing Service (AWPS) does word processing. The rate for services is $32 per hour plus a $31.50 one-time charge. The total cost to a customer depends on the number of hours it takes to complete the job.
Find the equation that expresses the total cost in terms of the number of hours required to complete the job.
Let \(x\) = the number of hours it takes to get the job done.
Let \(y\) = the total cost to the customer.
The $31.50 is a fixed cost. If it takes \(x\) hours to complete the job, then (32)(\(x\)) is the cost of the word processing only. The total cost is: \(y = 31.50 + 32x\)
Slope and Y-Intercept of a Linear Equation
For the linear equation \(y = a + bx\), \(b\) = slope and \(a = y\)-intercept. From algebra recall that the slope is a number that describes the steepness of a line, and the \(y\)-intercept is the \(y\) coordinate of the point \((0, a)\) where the line crosses the y-axis.
Svetlana tutors to make extra money for college. For each tutoring session, she charges a one-time fee of $25 plus $15 per hour of tutoring. A linear equation that expresses the total amount of money Svetlana earns for each session she tutors is \(y = 25 + 15x\).
What are the independent and dependent variables? What is the y-intercept and what is the slope?
The independent variable (\(x\)) is the number of hours Svetlana tutors each session. The dependent variable (\(y\)) is the amount, in dollars, Svetlana earns for each session.
The y-intercept is \(25 (a = 25\)). At the start of the tutoring session, Svetlana charges a one-time fee of $25 (this is when \(x= 0\)). The slope is \(15 (b = 15)\). For each session, Svetlana earns $15 for each hour she tutors.